Market regulator Securities and Exchange Board of India (Sebi) has returned the initial public offering (IPO) draft documents of four companies today, July 30. These companies include supermart major Vishal Mega Mart, education NBFC Avanse Financial Services, PE firm TPG Capital-backed Sai Life Sciences, and BMW Ventures. 

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Sebi received the IPO papers of these companies on July 1.

The market watchdog has returned the offer documents of these four companies for "non-compliance with Regulation 7(1) (a) of Sebi ICDR Regulations, 2018, as of July 24, 2024".

Simultaneously, Sebi has approved the IPO draft papers of four companies. These companies are PN Gadgil Jewellers, KRN Heat Exchanger, Ecos India Mobility, and Premier Energies. The regulator has issued observation letters to these companies, which amounts to an approval.

According to Regulation 7(1) (a) of the Sebi ICDR Regulations, an issuer making an initial public offer must ensure that it has applied to one or more stock exchanges for in-principle approval to list its specified securities on such stock exchanges and has selected one of them as the designated stock exchange.

Vishal Mega Mart submitted its draft documents to the markets regulator on July 12 using the secret filing process. While Avanse Financial Services submitted draft papers in June to raise Rs 3,500 crore through an IPO. According to the draft red herring prospectus (DRHP), the proposed initial share sale included a fresh issue of equity shares of up to Rs 1,000 crore as well as an offer for sale (OFS) of up to Rs 2,500 crore from the selling shareholders.

The company, promoted by Olive Vine Investment Ltd, an affiliate of private equity major Warburg Pincus, proposed to use the funds to increase its capital base for future needs.
Sai Life Sciences' proposed IPO consisted of a fresh issue of equity shares worth Rs 800 crore and an OFS of 6.15 crore shares by a promoter, investor shareholders, and other shareholders, as per the draft papers.

Under the OFS, one of the promoter entities -- Sai Quest Syn Pvt Ltd -- and investor shareholders -- TPG Asia VII SF Pte Ltd, HBM Private Equity India -- were proposed to partly offload their respective stakes.

Of the IPO proceeds, funds to the tune of Rs 600 crore were earlier supposed to be used for debt payment and a portion for corporate general purposes.

With agency inputs